Archive for the 'News' Category
The Global Competition Review (GCR) has announced the publication of the first edition of its (may I say long needed) Foreign Investment Review (see: Getting the Deal Through – Foreign Investment Review 2012).
From GCR:
“The first edition of Foreign Investment Review, a new volume in our series of annual reports, which provide international analysis in key areas of law and policy for corporate counsel, cross-border legal practitioners and clients.”
This global survey of foreign investment rules includes Canada and the following other jurisdictions: Argentina, Australia, Brazil, China, the Czech Republic, France, Germany, Ghana, Hong Kong, India, Israel, Italy, Japan, Korea, Mexico, Nigeria, Poland, Russia, Saudi Arabia, Switzerland, Turkey, the UK, United States and Vietnam.
For more information see:
The National Competition Law Section of the Canadian Bar Association will be hosting a Marketing Practices Committee Roundtable with Competition Bureau officials in Toronto this Thursday.
Bureau representatives are to include Lisa Campbell (Deputy Commissioner of Fair Business Practices) and Brendan Ross (Major Case Director and Strategic Policy Advisor).
For more information see:
On April 29, 2012, the Federal Government announced proposed amendments to the Telecommunications Act that, if passed, would allow the CRTC to recover the cost of Do Not Call List investigations and enforcement efforts directly from the telemarketing industry in the form of fees.
In making the announcement, the Government said:
“Today, the Honourable Christian Paradis, Minister of Industry and Minister of State (Agriculture), announced additional action to protect consumers through sustainable funding for the National Do Not Call List.
‘The National Do Not Call List is a successful program that many Canadians rely on to protect them from unwanted telemarketing calls,’ said Minister Paradis. ‘Today’s announcement reinforces our government’s commitment to protecting consumers.’”
This new proposed initiative to assist with the financing of Do Not Call List investigations and enforcement would be implemented through amendments to the Telecommunications Act, introduced as part of provisions in the federal Jobs, Growth and Long-term Prosperity Act, introduced late last week in the House of Commons (see: Bill C-38).
Other proposed changes as part of Bill C-38 include increasing the transparency of Canada’s Investment Canada Act review process (see: Federal Government announces Investment Canada Act changes to add transparency to Canadian foreign investment review process).
The Government also announced upcoming consultations on the proposed new fee structure for Do Not Call List investigations and enforcement, which, if passed, would come into effect in the Spring of 2013.
Canadian enforcement authorities, including the Competition Bureau and the CRTC, have recently been distinctly more aggressive in seeking penalties in a variety of advertising and marketing law cases – for example the recent sweeping enforcement steps taken by the CRTC against 85 companies for violating Canada’s telemarketing rules: 85 companies face CRTC telemarketing enforcement action.
On April 27, 2012, the Federal Government announced that it plans to amend to Investment Canada Act (ICA) to give the Minister of Industry more freedom to disclose whether an investment is likely to be found to be of net benefit to Canada (through Bill C-38, the Jobs, Growth and Long-term Prosperity Act, introduced on April 26th). In its news release, the Government said:
“Through the Jobs, Growth and Long-term Prosperity Act, the Harper Government has introduced amendments to the Investment Canada Act to provide the Minister of Industry with a greater ability to publicly communicate information on the review process, while preserving commercial confidences. The amendments would also promote investor compliance with undertakings by authorizing the Minister to accept security, when offered by an investor, for payment of any penalties ordered by a court for a contravention of the Investment Canada Act.
The amendments would allow the Minister to disclose publicly the fact that he has sent a preliminary notice to an investor that he is not satisfied that the investment is likely to be of net benefit to Canada. They would also allow the Minister to publicly explain his reasons for sending the notice as long as it would not cause harm to the Canadian business or the investor.
The Harper Government recognizes that strong confidentiality protection is critical to ensure that investors provide the information necessary to conduct reviews as well as to prevent the harm that could come from disclosure.”
The announcement is consistent with recent statements in the Federal Budget, tabled on March 29, 2102 (see: 2012 Budget Includes Changes to Canada’s Foreign Investment Regime), in which the Government said that it would be introducing “targeted improvements” to the administration of the Investment Canada Act “in the interests of greater transparency while preserving investor confidentiality.”
Bill C-38 would, if passed, broaden the exceptions to the existing privilege protections under the ICA to allow the Minister to publicly explain why an investor has been sent a notice under subsection 23(1) of the ICA (a preliminary notice that the Minister is not satisfied that an investment is likely to be of net benefit to Canada, the relevant substantive test for approving reviewable investments under the ICA).
The ICA contains a broad privilege provision, which provides, subject to a number of exceptions, that information received in relation to the enforcement and administration of the ICA is privileged. The ICA also allows investors to make representations and submit undertakings within 30 days of receipt of an interim notice from the Minister (or as agreed between the investor and the Minister).
On April 27, 2012, Industry Canada published a new guideline regarding the availability of mediation where the responsible Minister believes a non-Canadian has failed to comply with undertakings (i.e., commitments) in relation to an approved Investment Canada Act investment.
The new Investment Canada Act guideline provides that, where the responsible Minister believes that a non-Canadian investor has failed to fulfill undertakings, the following steps may be taken: (i) Investment Review Division officials may discuss potential resolutions for the non-implementation of undertakings, (ii) new undertakings may be negotiated, or (iii) the Minister may demand the non-complying investor to justify non-compliance with its undertakings (and commence proceedings where an investor fails to comply).
Interestingly, the new Investment Canada Act guideline states that: “[the] Minister recognizes that, in some instances, a resolution achieved through discussion may be preferable to potentially lengthy and costly legal proceedings.”
While it is not clear what precipitated the issuance of this new guideline, it may be that it was issued following lengthy and contentious proceedings relating to the alleged non-compliance of U.S. Steel with undertakings made in relation to its acquisition of Stelco in 2007.
For a copy of the guideline see:
For more about Canadian foreign investment rules see:
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Oxford University Press (OUP) will be publishing a new competition/antitrust related journal called The Journal of Antitrust Enforcement. The new journal is to be edited by Ariel Ezrachi (Oxford CCLP) and William Kovacic (George Washington University).
From OUP:
“The Journal of Antitrust Enforcement is published by Oxford University Press and provides a platform for cutting edge scholarship relating to public and private competition law enforcement, both at the international and domestic levels.
The journal covers a wide range of enforcement related topics, including: public and private competition law enforcement, cooperation between competition agencies, the promotion of worldwide competition law enforcement, optimal design of enforcement policies, performance measurement, empirical analysis of enforcement policies, combination of functions in the mandate of the competition agency, competition agency governance, procedural fairness, competition enforcement and human rights, the role of the judiciary in competition enforcement, leniency, cartel prosecution, effective merger enforcement and the regulation of sectors.”
Yesterday, the Canadian Council of Chief Executives (CCCE) published a new report on the competitiveness of Canadian agricultural processors in global markets and in particular Asia, entitled: Golden Opportunities and Surmountable Challenges: Prospects for Canadian Agriculture in Asia.
From the CCCE:
“Canada’s agri-food sector has the potential to become a growth engine for the entire economy if the federal government moves quickly to negotiate preferential trade agreements with fast-rising Asian markets, a new report concludes.
‘The rise of China, India and other emerging markets has dramatically changed the outlook for Canadian farmers and agricultural processors,’ says Michael Gifford, Canada’s former chief agricultural trade negotiator and the author of the report. … Mr. Gifford’s paper is the fourth in a series of reports commissioned by the Canadian Council of Chief Executives (CCCE) to explore the impact on Canada of Asia’s growing economic power. …
Mr. Gifford notes that, for decades, Canada’s agri-food sector has struggled with boom-and-bust cycles, frequent surpluses and low farm incomes. As in many other industrialized countries, agricultural production increased rapidly in the second half of the 20th century, outstripping population growth.
However, the rise of China, India and other emerging markets is driving major changes in the global agri-food market. Across Asia, rapid urbanization and income growth are contributing to an unprecedented expansion in the number of middle class consumers, and a consequent increase in demand for meats, vegetable oils, dairy products, fruits and sugar as well as processed food and restaurant meals.
All of this augurs well for countries such as Canada that are net agricultural exporters, Mr. Gifford says. ‘Asia’s expanding appetite for imported food provides Canadian agricultural producers with golden opportunities to grow and prosper – provided that the federal and provincial governments and industry work together to identify and overcome a variety of external and internal challenges.’”